Why the Poor are getting Poorer and the rich are getting Richer in India?
Prime Minister Narendra Modi has completed four years in office but the country has not yet seen ‘Acche din.’ In the last four years, the country’s GDP has fallen continuously. In 2015, the country’s GDP rate was 8.16%, which is now at 7.36%. This fact tells us that the gap between the rich and the poor is increasing in the country.
I am presenting some statistics which will show how unequal the rich and the poor is in the world and India:
World’s richest and the poor
- According to the Oxfam report, the world’s 8 richest people have the same wealth as the 3.3 billion people who make up the poorest half of humanity. Since 2015, half of the wealth is owned by 1% of the rich. The 1% have more money than the rest 99% of the population.
- 10% of the world’s poorest people have not been more than 200 rupees annually, while the income of 1% of the richest has increased by 182 times.
- Famous Economist Thomas Piketty finds that in last 30 years, the income of half the world’s poorest people increased by 0%, while the income of 1% increased by 300% which means that conditions of the poor are not getting better at all while the rich are getting richer.
- From 2010, the wealth of billionaires has increased by 18% per annum.
What is the condition in India
- 73% of the affluent properties go to the account of 1% of the country’s rich.
- Around half of the country’s poor (66%), possess 1% of the country’s property.
- Now there are 101 new billionaires with 17 new billionaires in the country.
- Property of billionaires in India has increased by 4891 billion rupees.
- Twelve years ago, the share of trillions in India’s gross domestic product was 2%. Now it has increased to 22%.
- Rich vs Poor: What can Policymakers Do?
- India Ranks 126th out of 200 in Per Capita GDP terms
- Corruption is Spreading further in Modi’s Rule: Survey
- Top 10 Indian Cities Comprises Most of India’s GDP
The slogan ‘Sabka Sath sab ka Vikas’ of the Central government is visible only when it comes to the rich and the situation of the poor has worsened. The gap between economic and social inequality has widened in the country. Still, millions are deprived of education, health and living infrastructure.
We read regularly about the successes of government schemes in lavishly advertised newspaper pages claiming development of the poor but in reality, it is totally different. The suicide rate of farmers has increased since 2014. According to National Crime Record Bureau (NCRB), farmer suicides in the country rose by 42% in the country between 2014-2015, but in various newspapers
More than half the population does not have basic amenities
With increasing population, inflation of the country has also led to an imbalance in the social and economic conditions of the country which can be balanced by a well-planned economic policy. Though the country has progressed in the field of science and technology, the basic requirements of water, electricity, medical services, and housing in addition to food and clothing are not available to the maximum population in the country.
No benefits of poverty alleviation and development schemes
The promises of the Centre towards poverty alleviation can be understood by this fact. The number of centrally sponsored schemes of poverty eradication and development in the country is more than 225. There are more than 100 schemes in the field of rural development and agriculture only, but till now these schemes are not available. According to some estimates, about one-third of the population in India live below the poverty line and about 77% of the population lives on less than Rs 20 per day but the government does not show any concern over their circumstances.
India has 134th rank in human development index
According to the UNDP’s latest report, India’s rank is constant at Human Development Index for last two years. In a World Bank report, the states of India are compared to the world’s poorest countries. It was reported that 62 crore people live in states which are at the bottom of developmental activities. In these backward states like Uttar Pradesh, Bihar, and Jharkhand, one-third of the country’s population resides.
Government policies are responsible
In a report, Oxfam claims that the unbalanced policies of the government are responsible for increasing inequality in the country. The report of India Inequality Report-2012, says that the unbalanced policies of governments are responsible for increasing inequality in the country. At the same time, the share of income under the income pyramid is continuously decreasing. It has been said that India is in line with the countries where the inequality is highest. Inequality in income, health and the main reasons responsible for this. The report said that the government created such policies which benefited the industrialists without meeting the labor class.
In September 2016, former US President Barack Obama said in his speech in the United Nations General Assembly that “The world would never be able to survive, where 1% of the population had such wealth, as much as 99% of the population.” So it’s time the government changes its priorities.